Author: Vitaliy Dadalyan

Rolls-Royce to Raise $6.5 Billion After Engine Demand Collapses

(Bloomberg) -- Rolls-Royce Holdings Plc unveiled a long-awaited financing plan, targeting up to 5 billion pounds ($6.5 billion) of fresh capital to buttress the U.K. jet-engine-maker against an historic aerospace downturn that still has years to go.The London-based company will tap existing shareholders for 2 billion pounds in a rights issue, and is seeking to borrow a further 3 billion pounds in bonds and loans, it said in a statement Thursday. Rolls-Royce shares fell as much 11%, extending a months-long decline, while its euro bonds jumped by the most since they were issued.The funding is aimed at seeing Rolls-Royce through to 2022, when it expects to resume strong cash generation. Chief Executive Officer Warren East, who has been working on the plan for months, sought to reassure investors that it would suffice, and give the company breathing room to sell assets from a stronger position as he repositions to focus more...